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The Colombo Stock Exchange (CSE) launched a state-of-the-art new generation Depository System for its fully owned subsidiary, the Central Depository Systems (Pvt.) Ltd (CDS) and an upgrade to the Automated Trading System (ATS).
The significant event that took place today was the inauguration of the Bell Ringing Ceremony, from the purpose built platform on the trading floor, at the CSE’s World Trade Center offices to open the day’s trading on 2nd December. This tradition is followed by many stock exchanges globally. Commencing today, the CSE in keeping with the tradition followed by many of its peer exchanges globally will open trading with the formal bell ringing ceremony on the first day of trading for all new companies listing on the CSE and at other special events, such as today. The CSE would also make the bell ringing ceremony a regular feature by inviting special guests to perform this task.
The Bell Ringing Ceremony was officially launched today by the Chairman of the Securities and Exchange Commission of Sri Lanka Dr. Nalaka Godahewa and the Chairman of the Colombo Stock Exchange Mr.Vajira Kulatilaka in the presence of a gathering of Directors, Management and staff of the CSE, Commission Members and Directors of the SEC, CEO’s of Member Firms, Investors, other invitees and the media.
The new generation CDS system which was also formally launched today and lays the platform for future enhancements relating to post trade Clearing and Settlement services and moving to a Delivery Verses Payment” (DVP) system of settlement and a Central Counter Party (CCP) System.
The new CDS features avant-garde technology that supports multi-asset classes and caters to the overall strategic goals of the CSE to improve trading infrastructure. The new system uses technology that comprises of a three-tier architecture which ensures system robustness, flexibility and adaptability.
The CDS for shares and Corporate Debt in Sri Lanka was first launched in 1991 and was the first depository in South Asia and one of the first depositories globally. The 19 year old legacy system is now being replaced as a part of the CSE’s strategy for infrastructure development. The upgrade also brings the CSE on par with other Asian Exchanges, by the adoption of best practices for post trade depository services.
This evolution from the legacy system to a system that uses cutting-edge technology is the first step in transitioning towards a more accessible platform for the end user.
“The Securities and Exchange Commission of Sri Lanka (SEC) intends to develop the CSE to become one of the most technologically advanced modern Stock Exchanges in the world comprising of proper risk management systems and an effective Central Counter Party (CCP). The upgraded CDS system will be able to offer more efficient depository services to market participants and investors and lead to broad-basing the investor base and increase share ownership among the populace of Sri Lanka”, SEC Chairman Dr. Nalaka Godahewa said.
“The CSE was one of the leading Exchanges in the migration to a scrip-less trading environment and today, we seek to maintain that prestige by continuous improvement to our clearing and settlement infrastructure. An easily accessible system that is both secure and without impediments enhances the user experience of our ultimate stakeholders – our investors. Therefore care is taken to ensure that all improvements to the system will result in a perceptibly progressive experience for CDS account holders,” CSE Chairman Mr. Vajira Kulatilaka said.
“MillenniumIT has enjoyed a long standing relationship with the Colombo Stock Exchange. We are pleased to have one of our flagship products, “Millennium CSD”, implemented in a customised manner for the use of the CDS. The “Millennium CSD” is a highly reliable, extensible, multi-asset class clearing, settlement and depository system which is built around revolutionary architecture. It is designed to meet the needs of custody and settlement services for markets operating in a scrip-less environment such as the CSE,” CEO MillenniumIT Mr. Mack Gill said.
The new generation CDS was supplied and maintained by Millennium IT Software (Private) Limited, now part of the London Stock Exchange (LSEG) Group, and facilitates a secure electronic environment for the safekeeping of instruments and the transfer of ownership pursuant to trading.
